Hills licenses home brands to Woolies to focus on technology
Hills has signed a strategic deal with Woolworths to license 240 of its household products, allowing the SA-based company to shift its entire focus to the technology side of its business, which includes healthcare and security.
Hills set up a healthcare division two years ago to develop a portfolio of technology solutions aimed at the healthcare sector, particularly hospitals, residential aged care and home-based care.
Hills Health Solutions' portfolio now includes IP and WiFi nurse call systems from Merlon and Questek, Hospital Television Rentals (HTV), a distribution agreement with Irish hospital patient infotainment firm Lincor, and another for Lively, a range of home monitoring sensors.
The licensing agreement with Woolworths will see the retail giant have exclusive rights to the Hills brand for its iconic Hills Hoist, clothes care and garden sprayers, which Woolworths will distribute through its Masters, Home Timber and Hardware and Big W stores.
Hills will retain ownership of its intellectual property and will receive income from annual licensing fees, which it plans to invest in its technology interests, which also include security and surveillance, audio visual, automation, and communications and mobility.
“This agreement will also allow Hills to focus on building our technology business, particularly our security and healthcare portfolio to achieve our stated growth ambitions,” Hills CEO Ted Pretty said.
“Additionally, we will enjoy greater certainty of earnings and a strengthening of our profit performance. There will be a positive impact on the balance sheet from the reduced requirement for working capital.
“This is an exciting step forward in our strategy to be Australia’s leading provider of technology solutions into government, enterprise, business and the home.”
Posted in Australian eHealth